baseball history

Batter Up!

photo shows a hand holding a softball in front of a lit field

The return of baseball has us dreaming of summer days in the park. We’ve written about baseball and the markets before, as the rich history and data in both draw parallels.

We’re not the only ones; Uncle Warren Buffett himself has used baseball to think about Mr. Market.

As Buffett quipped, “The stock market is a no-called-strike game. You don’t have to swing at everything.”

Our “plate discipline,” as it were, has been strengthened by time. But the ability to let investment opportunities go by is only part of it.

Once you understand that you don’t have to swing at everything, you can discover your strengths. Our principles guide what “pitches” we swing at. We only swing when we think we can hit it out of the park. (Of course, like the best batters, it’s possible to miss from time to time).

Just as there are batters who seek out certain types of pitches, investors can do the same. We don’t pretend that our approach is the only way. If another batter likes the high ones, good for them—not for us.

Clients, if you’ve got a pitch you’d like to heave at us, give us a call.

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Play the audio version of this post below:

Hit ’em Where They Ain’t

© Can Stock Photo / dehooks

Investors can learn a lot from Willie Keeler, one of the smallest major league baseball players in history. Wee Willie stood 5’4” and weighed 140 pounds.

Playing from 1892 to 1910, Willie was a prolific hitter, with a batting average of .345 over that long career. He explained his success with words that have become part of baseball lore:

“Keep your eye on the ball, and hit ‘em where they ain’t.”

We believe it makes sense to strive to understand investment opportunities, researching companies, trends, and economic developments to try to gain an edge. This is what it means to “keep your eye on the ball.”

As contrarians, we seek to avoid stampedes. If the crowd is there, we probably want to be somewhere else. As Warren Buffett once said, “be greedy when others are fearful, and fearful when others are greedy.” Isn’t this the investment version of “hit ‘em where they ain’t?”

It would be interesting to know whether Wee Willie Keeler did any investing. Did his investing philosophy match his baseball hitting philosophy?

We cannot know the answer to that. But we do know, our investing philosophy matches up very well. “Keep your eye on the ball, and hit ‘em where they ain’t.”
Clients, if you would like to talk about his or anything else, please email us or call.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.